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    Home ยป Pakistan’s Export Concessions Result in Rs44 Billion Revenue Loss in 2023-24: FBR Report
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    Pakistan’s Export Concessions Result in Rs44 Billion Revenue Loss in 2023-24: FBR Report

    September 27, 20251 Min Read
    FBR
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    Pakistan’s tax concessions and exemptions on export saw the country losing almost Rs44 billion in national revenue during 2023-24. This was indicated in the Federal Board of Revenue’s (FBR) Tax Expenditure Report-2025.

    The report highlights some of the schemes and special regulatory orders (SROs) that had resulted in the revenue shortfall. One of the key contributors, SRO.450(I)/2001, dealing with Duty and Tax Remission for Exporters (DTRE), resulted in a revenue loss of Rs734.66 million. The Export Processing Zones under the same SRO resulted in a greater loss of Rs23 billion.

    Also, the Manufacturing Bond Scheme under SRO.450(I)/2001 led to a loss of Rs712 million. Temporary importation concessions that were issued under SRO.492(I)/2009 resulted in a loss of Rs17 billion. The Export Oriented Units Scheme, under SRO.327(I)/2008, yielded Rs2 billion in lost revenue as well.

    The report also refers to certain minor exemptions under SRO.326(I)/2008 and Chapter 99 of the Pakistan Customs Tariff pertaining to temporary importation of machinery, packing materials, and scientific equipment. Yet, the fiscal impact of these exemptions was trifling.

    The FBR report highlights how these tax concessions and exemptions to promote exports have had a drastic impact on the national exchequer, leading to substantial revenue losses.

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